1. Boiler Upgrade Scheme Grant
The first step for any heat pump purchase should be claiming the £7,500 BUS grant (for eligible properties in England and Wales). This is free money — not a loan — applied directly by your installer. Always claim this before considering other finance.
2. Home Energy Scotland Loan
Scotland residents can access interest-free loans of up to £15,000 for heat pump installation through the Home Energy Scotland programme, alongside cashback grants of up to £9,000. This significantly reduces the financial barrier in Scotland.
3. Green Home Finance
Several UK lenders offer green home improvement loans at preferential rates for energy-efficient upgrades including heat pumps. Rates from 3.9% APR are available for eligible customers. Check with your bank and compare with providers like Zopa, NatWest Green, and Barclays Green Home Finance.
4. Green Mortgages
If you're purchasing a property or remortgaging, some lenders offer additional borrowing at lower rates for green improvements. Halifax, Nationwide, and Barclays all offer green mortgage products.
5. Installer Finance
Many MCS-accredited installers offer 0% purchase finance over 12–24 months or low-rate finance over longer periods (typically 5–10 years). This is arranged through third-party finance providers and subject to credit approval.
6. Energy Bills Savings
Don't forget to factor in running cost savings. If a heat pump saves £200–£400/year on energy bills, this partially offsets finance costs. Calculate your total cost of ownership including savings over 10–15 years.
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